Student Name
FPX 4110
University Name
Submission Date
Overview of Inventory Control
Crucial to supply chain
Monetary savings
Get the most profit from
Goals of inventory models
How much to order?
Where to cut costs?
Which is going quickly?
How much deadstock?
What is increasing holding costs?
Overview of Inventory Control (cont.)
Inventory Control Models
EOQ
Used by Vila Health
Inventory Production Quantity
Order in single batch
ABC Analysis
Determine most important items
Review of EOQ Purpose and Data
Economic Order Quantity (EOQ)
Minimize holding and ordering costs
What other models are based on
Take the square root of (2SD) / Production Cost
S is your setup (order) costs
D is your demand rate (units)
Assumes constants of inventory
Inaccurate in low or high demand periods
Vila Health EOQ is 47
Inventory Considerations
Quantity to order
Determined by:
Balancing cost or processing
Cost of acquiring
Obtained through EOQ
Best savings when buying in bulk
Consignment inventory
Purchase cost initially waived until passed on to end user
Ideal for expensive items
Still accrue holding costs
Recommendations for Inventory Ordering
Technology!!
CMMS
Monitor inventory and equipment from day one
Difficult to manage mobile inventory
RTLS
Identify and track mobile inventory
Emits wireless tracking signal
Resolves issues with CMMS
Leadership
5 characteristics of good supply chain leadership
Business-minded
Innovation
Playmakers
Problem-solver
Patient Advocate
Implications
One of the largest expenses
Stock following and control can have outrageous effects
Fundamental to place assets into stock organization
Definitively expect bargains plans
Anticipate excess
Stay aware of consistence
Conclusion
Supply chain can make or break you
Huge money related consequences
Find cost save reserves
Stay aware of patient-centered care
Can be last possibility
References
Accountingexplanation.com (2011). Economic Order Quantity (EOQ). Retrieved from:
http://www.accountingexplanation.com/economic_order_quantity_eoq.htm
Ciemcioch, S. (2019). Is Consignment Inventory the Right Choice for Your Business? Retrieved from:
https://www.warehouseanywhere.com/resources/consignment-inventory/
Johnston, K. (n.d.) The Importance of Inventory Tracking in the Medical Field. Retrieved from:
https://smallbusiness.chron.com/importance-inventory-tracking-medical-field-80672.html
Kros, J. F., & Brown, E. C. (2013). Health care operations and supply chain management: Operations, planning, and control. San Francisco, CA: Jossey-Bass. Retrieved from:
https://ebookcentral-proquest- com.library.capella.edu/lib/capella/reader.action?docID=1104470&ppg=387#
Nelson, S. (2021) Five Traits Supply Chain Leaders Need to Survive in Today’s Evolving Healthcare Landscape. Retrieved from:
https://supply-chain.cioreview.com/cxoinsight/5-traits-supply-chain- leaders- need-to-survive-in-todays-evolving-healthcare-landscape-nid-26456-cid-78.html
Sherwin, J. (2013). The Essentials of Medical Device Inventory Tracking. Biomedical Instrumentation & Technology, 47(5), 382-6. Retrieved from:
http://library.capella.edu/login?qurl=https%3A%2F%2Fwww.proquest.com%2Fscholarly-journals%2Fessentials-medical-device-inventory-tracking%2Fdocview%2F1459343142%2Fse-2%3Faccountid%3D27965
Sortly.com (2021). What are the Most Common Inventory Control Models? Retrieved from:
https://www.sortly.com/blog/what-are-the-most-common-inventory-control-models/
